Wells Fargo analyst Donald Fandetti has maintained their bullish stance on COF stock, giving a Buy rating on May 27.
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Donald Fandetti has given his Buy rating due to a combination of factors that highlight Capital One Financial’s promising future. One of the primary reasons is the anticipated large share buyback announcement expected in July, which could range between $7 billion to $10 billion. This buyback is seen as a significant catalyst for the stock, reflecting a catch-up from excess capital build and a favorable payout ratio on forward earnings.
Additionally, Fandetti points to the strategic move of transferring all credit card volume to the Discover Network, which is expected to enhance revenue through network and acquiring fees. This shift is seen as a strategic event that could lead to a higher mix of affluent cardholders and strengthen partnerships in travel and entertainment. Furthermore, the introduction of digital checking accounts with a 1% debit cashback offer is projected to boost net interest margin by increasing interchange revenue, further supporting the Buy rating.
In another report released on May 27, Bank of America Securities also maintained a Buy rating on the stock with a $233.00 price target.